Evart, Young & Hobbs
CRD Number 110263
SEC File Number 801-42861

Introduction

Evart, Young & Hobbs (EYH) is an investment adviser registered with the U.S. Securities and Exchange Commission. Investment advisory and brokerage services and fees differ; therefore, it is important for you to understand the differences. Free and simple tools are available to research firms and financial professionals at Investor.gov/CRS, which also provides educational materials about investment advisers, broker-dealers, and investing.

Relationships & Services

“What investment services and advice can you provide me?”

Description of Services and Monitoring

EYH provides investment advisory services to individual clients, as well as trusts, qualified retirement plan sponsors, and business entities. We are in our 38th year of operation. We are a fee-only firm and we currently manage $215.7 million in assets. EYH manages securities in accounts on your behalf.  We do not act as custodian of your assets.  You always maintain asset control.  We place trades for you under a limited power of attorney. EYH recommends institutional-class stock mutual funds with low annual expense ratios, and extremely low or no transaction costs, along with other low-cost investment solutions, such as Exchange Traded Funds (ETFs), and individual stocks. For more on our investment philosophies, and the risks of our strategies and/or specific investments recommended, please refer to Item 8 in the attached.

On request we furnish advice to you on matters not involving securities, such as financial planning matters, taxation issues, and trust services that often include estate planning.

Monitoring

Portfolio Reviews and Rebalancing of your portfolio, for the assets held under management with us will be undertaken: (1) periodically; (2) upon request, and (3) upon a substantial asset class change, under the following adopted policies and procedures.

Investment Authority

We accept discretionary authority to manage securities accounts on your behalf.  We have the authority to determine, without obtaining your specific consent, the securities to be bought or sold, and the amount of the securities to be bought or sold.

If there were any transaction fees or commissions paid by you to the custodian on certain trades, we do not receive any portion of those fees.  A limited power of attorney is a trading authorization for this purpose.

Account Minimums and Other Requirements

We generally require discretionary advisory clients to maintain a minimum account size of $500,000, although this minimum may be waived in certain circumstances.

Additional Information

Conversation Starters

  • Given my financial situation, should I choose an investment advisory service? Why or why not?
  • How will you choose investments to recommend to me?
  • What is your relevant experience, including your licenses, education and other qualifications? What do these qualifications mean?

For additional Information, please see our Form ADV Part 2A (with special emphasis on Items 4, 7, and 16 of Part 2A

“What fees will I pay?”
We base our fees on a percentage of assets under management. We, in our sole discretion, may waive our minimum fee and/or charge a lesser investment advisory fee based upon certain criteria (e.g., historical relationship, type of assets, anticipated future earning capacity, anticipated future additional assets, dollar amounts of assets to be managed, related accounts, account composition, negotiations with clients, etc.).

For asset management, we charge a tiered ongoing asset-based fee in advance, at the end of each quarter. The fee is charged as a percentage of your assets that we manage. (Part 1A Item 5.E.)

Assets Under Management Annual Fee %
First $1,500,000 1.00%
Next $1,500,000 0.75%
Next $2,000,000 0.50%
Amounts over $5,000,000 0.25%

Description of Other Fees and Costs: Custodians may charge transaction fees on purchases or sales of certain mutual funds and Exchange-Traded Funds. These transaction charges are usually small and incidental to the purchase or sale of a security. The selection of the security is more important than the nominal fee that the custodian may charge to buy or sell the security.

Conversation Starters

  • Help me understand how these fees and costs might affect my
  • If I give you $10,000 to invest, how much will go to fees and costs, and how much will be invested for me?

Additional Information: You will pay fees and costs whether you make or lose money on your investments. Fees and costs will reduce the amount of money you make on your investments over time. Please make sure you understand what fees and costs you are paying. More detailed information about our fees and costs are included in our Form ADV Part 2A (Items 5).

When we act as your investment adviser, we must act in your best interest, putting your interest ahead of ours. Where the interests of our Firm or staff conflict with our duties to you, we will work to eliminate the conflict or inform you of it with clarity. You should understand and ask us about these conflicts because they can affect the investment advice, we provide you.

“How else does your firm make money and what conflicts of interest do you have?”
We only generate revenues from our asset management services and financial planning fees, as described above. Therefore, the more assets in your advisory account, the more you will pay in fees, and we may have an incentive to encourage you to increase the assets in your account. For example, we may recommend that you rollover a 401K retirement account to an IRA account managed by EYH, as this would increase the amount of assets under our management.

“How do your financial professionals make money?”
Our financial services professionals are compensated on a portion of the total fees received by EYH and a base salary. For more information about our conflicts of interest, we recommend reading our ADV Part 2A, Items 4 and 10.

Conversation Starter

  • How might your conflicts of interest affect me, and how will you address them?

Disciplinary History

 “Do you or your financial professionals have legal or disciplinary history?”
No – Neither the Firm nor any of our financial professionals have a disciplinary history. We invite you to visit Investor.gov/CRS for a free and simple search tool to research our Firm and financial professionals.

Conversation Starters

  • As a financial professional, do you have any disciplinary history? For what type of conduct?

Additional Information

Conversation Starters

  • Who is my primary contact person? Is he or she a representative of an investment adviser or a broker-dealer?
  • Who can I talk to if I have concerns about how this person is treating me?

We encourage you to seek out additional information about our investment advisory services in our Form ADV Brochure on Investor.gov or adviserinfo.sec.gov (CRD 110263). Alternatively, you can call 650-802-0342, and ask either of our Principal’s, Rosalee S. Young or Derek Hobbs and speak with one of them directly.